SAP Risk Management is an essential tool for organizations to identify, assess, and mitigate risks across various functions. Let’s dive into some real case studies of companies that have used SAP Risk Management to manage risks effectively.

First, we have Royal Dutch Shell, a global energy company that operates in over 70 countries. Royal Dutch Shell uses SAP Risk Management to manage risks and comply with regulatory requirements. By using SAP Risk Management, the company can identify risks, assess their potential impact, and develop risk mitigation strategies. This has helped the company to reduce risks, improve decision-making, and increase transparency.

Next, we have Volkswagen, a German car manufacturer that has faced several risk management challenges in recent years, including the 2015 emissions scandal. Volkswagen uses SAP Risk Management to identify and manage risks across its global operations. The software has helped the company to develop a risk management culture, increase collaboration among departments, and enhance risk reporting and monitoring.

Moving on, we have Nestle, a Swiss food and beverage company that operates in over 190 countries. Nestle uses SAP Risk Management to manage risks related to its supply chain, compliance, and financial operations. By using the software, Nestle can identify and mitigate risks, improve decision-making, and increase efficiency in its risk management processes.

Lastly, we have Siemens, a German engineering company that operates in several industries, including energy, healthcare, and transportation. Siemens uses SAP Risk Management to manage risks related to its operations, compliance, and financial performance. The software has helped Siemens to improve its risk management processes, reduce risk exposure, and increase transparency in its risk reporting.

These real case studies of companies using SAP Risk Management demonstrate the effectiveness of the software in managing risks across various functions and industries. By using SAP Risk Management, companies can improve decision-making, reduce risk exposure, and increase transparency in their risk reporting.

Let us narrate the use of the module with the help of a short story.

Meet Kate, the risk management lead at a mid-sized manufacturing company. One day, while working on her computer, she receives an urgent email from the CEO of the company, notifying her of a potential risk to their supply chain. The company had recently started working with a new supplier located in a region that was experiencing political instability, and the CEO was concerned about the risk of supply chain disruptions. Kate immediately opens SAP Risk Management, the software she implemented a few months ago to manage risks across the company. She navigates to the supply chain risk dashboard and sees that the software had already flagged the new supplier as a high-risk area due to its location. Kate quickly pulls up a risk assessment of the supplier, which had been completed using the software’s built-in risk assessment tools. She reviews the assessment and finds that the supplier had not provided any contingency plans for supply chain disruptions or any evidence of insurance to cover potential losses.

With this information, Kate was able to advise the CEO of the potential risks and provide suggestions for mitigating them. They were able to negotiate better contract terms with the supplier, including a requirement for contingency plans and insurance coverage. The next day, Kate receives another email from the CEO, thanking her for the timely response and proactive risk management. The company was able to avoid a potentially significant supply chain disruption, thanks to the use of SAP Risk Management. From that day onwards, Kate became the go-to person in the company for managing risks across their operations, and SAP Risk Management became an essential tool for the company’s overall risk management strategy.

The scenario of Kate, the risk management lead at a mid-sized manufacturing company, highlights the importance of having an effective risk management system in place. By using SAP Risk Management, Kate was able to quickly identify and assess potential risks and provide timely advice to the CEO. This allowed the company to mitigate the risk of a potential supply chain disruption and ultimately, protect the company’s bottom line. In today’s fast-paced business environment, risks can arise from a variety of sources, including political instability, changing market conditions, and natural disasters. Without an effective risk management system, companies can be caught off-guard, leading to significant financial losses and reputational damage. However, by leveraging technology like SAP Risk Management, companies can proactively manage risks and protect their business.

In addition to supply chain risks, SAP Risk Management can be used to manage risks related to compliance, cybersecurity, financial reporting, and more. With its advanced analytics and reporting capabilities, the software enables risk managers to identify potential risks and take proactive measures to address them. This, in turn, can help companies to reduce their risk exposure, improve decision-making, and ultimately, enhance their financial performance.

SAP Risk Management offers a range of financial benefits to companies, including cost savings, improved financial performance, increased efficiency, and enhanced reputation.

Firstly, effective risk management can lead to cost savings by minimizing the impact of potential risks. By identifying and mitigating risks before they become significant issues, companies can save money on costly repairs, legal fees, and insurance premiums.

Secondly, by effectively managing risks, companies can improve their financial performance. For example, by identifying and mitigating financial risks such as credit risks or market risks, companies can protect their assets and ensure that they have the financial resources to pursue growth opportunities.

Thirdly, SAP Risk Management provides a centralized platform for managing risks across the organization. By streamlining risk management processes and providing real-time risk monitoring, companies can improve their efficiency and reduce the time and resources needed for risk management activities.

Lastly, effective risk management can help protect a company’s reputation. By identifying and mitigating risks that could damage a company’s reputation, such as compliance risks or supply chain risks, companies can enhance their reputation and build trust with their customers.

In a nutshell, SAP Risk Management is a valuable tool for companies looking to achieve financial benefits through effective risk management. By identifying and mitigating risks across their operations, companies can save costs, improve financial performance, increase efficiency, and enhance their reputation.

Overall, implementing SAP Risk Management can help companies to manage risks effectively, improve decision-making, and enhance financial performance. While the financial benefits may vary depending on the specific company and industry, many companies have reported significant cost savings and improved operational efficiency because of using SAP Risk Management.

Let me put forward some more examples of some more case studies of some more leaders.

·      British American Tobacco: British American Tobacco (BAT) uses SAP Risk Management to manage risks related to its operations, including supply chain risks, compliance risks, and financial risks. The software helps BAT identify potential risks and assess their impact on the business, enabling the company to reduce risk exposure and improve decision-making. BAT has also used the software to improve its risk reporting processes, enabling more effective communication of risks across the organization.

·      Nestle: Nestle uses SAP Risk Management to manage risks related to food safety, compliance, and other aspects of its operations. The software helps Nestle identify potential risks and assess their impact on the business, enabling the company to reduce risk exposure and improve decision-making. Nestle has also used the software to improve its compliance with regulatory requirements and to ensure the safety and quality of its products.

·      Tata Motors: Tata Motors uses SAP Risk Management to manage risks related to product development, manufacturing, and supply chain management. The software helps Tata Motors identify potential risks and assess their impact on the business, enabling the company to reduce risk exposure and improve decision-making. Tata Motors has also used the software to improve its risk reporting processes, enabling more effective communication of risks across the organization.

·      ExxonMobil: ExxonMobil uses SAP Risk Management to manage risks related to safety, health, and environmental compliance. The software helps ExxonMobil identify potential risks and assess their impact on the business, enabling the company to reduce risk exposure and improve decision-making. ExxonMobil has also used the software to improve its risk reporting processes, enabling more effective communication of risks across the organization.

In conclusion, SAP Risk Management has proven to be a valuable tool for companies seeking to manage risk effectively and improve their financial performance. By identifying and mitigating risks proactively, companies can reduce their risk exposure, potentially avoid costly losses, and improve decision-making. Additionally, the software can help to streamline risk management processes, enhance transparency, and improve operational efficiency, leading to cost savings and improved business outcomes. The case studies discussed above provide real-world examples of how companies in different industries have leveraged SAP Risk Management to manage risk effectively and achieve financial success. As businesses continue to face complex and evolving risk environments, the use of SAP Risk Management is likely to become increasingly important in ensuring long-term success.

 References:

·      SAP Risk Management – Overview: https://www.sap.com/products/financial-management/risk-management.html?url_id=text-glo-404-reclink

·      Case study: How Royal Dutch Shell is using SAP Risk Management to mitigate risks: https://www.gartner.com/en/documents/3907012/case-study-how-royal-dutch-shell-is-using-sap-risk-manag

·      Case study: How Volkswagen is using SAP Risk Management to improve its risk management practices: https://www.digitalistmag.com/digital-economy/2018/01/30/volkswagen-driving-effective-risk-management-with-sap-05787713

·      Case study: How Nestle is using SAP Risk Management to manage risks in its supply chain: https://www.gartner.com/document/3730131/case-study-nestl-uses-sap-risk-management-to-manage

·      Case study: How Siemens is using SAP Risk Management to improve its risk management processes: https://www.sap.com/documents/2017/02/ee280e8d-a27c-0010-82c7-eda71af511fa.html

·      British American Tobacco: “British American Tobacco: Reducing compliance risk with SAP Risk Management: https://www.sap.com/documents/2016/08/e6e9fa9e-7a7c-0010-82c7-eda71af511fa.html

1. Tata Motors: “Tata Motors Limited: Managing product development risks with SAP Risk Management” https://www.sap.com/documents/2016/08/44c2e46e-7a7c-0010-82c7-eda71af511fa.html